A press release from Antero Resources, which is involved in eastern Ohio drilling:

Denver, Colorado, January 28, 2013—Antero Resources today announced its planned capital budget for 2013 as well as its 2013 outlook. Antero’s capital budget for 2013 is $1.65 billion and includes $1.15 billion for drilling and completion, $350 million for the construction of gathering pipelines and facilities in the Appalachian Basin including $150 million for water-handling infrastructure primarily in the Marcellus Shale and $150 million for leasehold. The capital budget excludes acquisitions.

All of the $1.15 billion drilling and completion budget is allocated to Antero-operated drilling, and virtually all of the 2013 drilling and completion budget is allocated to drilling rich gas acreage. Approximately 87% of the drilling and completion budget is allocated to the Marcellus Shale and the remaining 13% is allocated to the Utica Shale. During 2013, Antero plans to operate an average of 12 drilling rigs in the Marcellus Shale and 2 drilling rigs in the Utica Shale. These 14 rigs will be supplemented by 3 to 4 shallow rigs that will drill the vertical section of some horizontal wells to the kick-off point at approximately 6,000 feet. The shallow rigs increase drilling efficiency and reduce overall well costs.

Antero is currently building an 80-mile water sourcing and pipeline distribution system in West Virginia that it estimates will reduce frac water costs from approximately $6.00 per barrel currently to approximately $2.00 per barrel going forward, resulting in cost savings of up to $600,000 per well. In addition to well cost savings, Antero expects the water distribution system to provide a reliable year-round water supply and to significantly reduce truck traffic. The Company estimates that over 30% of the planned 2013 wells to be completed and as much as 75% of the planned 2014 wells to be completed will benefit from the new water infrastructure.

The capital budget is expected to be funded internally from operating cash flow, through the use of the undrawn capacity under Antero’s bank credit facility, through potential future capital markets transactions and potential sales of non-core assets.

2013 Outlook

Antero periodically provides guidance on certain factors that affect future financial performance. We are using the following key assumptions in our projections for 2013:

2013 Outlook:

NYMEX Gas Price ($/MMBtu)

$3.60

WTI Oil Price ($/Bbl)

$95

Net Production (MMcfed)

530 – 570 MMcfed

Net Liquids Production Bbld)

10,000 – 12,000 Bbld

EBITDAX ($MMs)(1)

$660 – $700 million

Cash Production Costs ($/Mcfe) (2)

$1.40 – $1.60/Mcfe

G&A ($/Mcfe)

$0.25 – 0.30/Mcfe

(1) See "Non-GAAP Financial Measures"

(2) Includes lease operating expenses, gathering, compression and transportation expenses and production taxes.